Fed Fake Taper Means Loose Money Forever
Fed Fake Taper Means Loose Money Foreverby Fintan Dunne, 19th Dec 2013 @ 11pm ET
The latest Taper Caper has been a propaganda-enabled total misdirection.
In truth, the Fed's feeble Taper was an admission of defeat, wrapped in a cloak of token austerity. In truth, it was the final capitulation to the new abnormal. A guarantee of broken markets and stealth confiscation from savers for the foreseeable future.
It was not the beginning of the end to loose money. It was the entrenchment of that policy.
To uncover the truth of the Federal Open Market Committee statement, watch the modifying words - not the impressive-sounding financial phrases.
For example, words like "if" and "however", give the lie to the Fed's headline plan to continue to Taper by degrees:
If incoming information broadly supports the Committee’s expectation of ongoing improvement in labor market conditions and inflation moving back toward its longer-run objective, the Committee will likely reduce the pace of asset purchases in further measured steps at future meetings. However, asset purchases are not on a preset course.....Yeah, and if pigs had wallets they'd likely buy the bar a round.
Here's just one example of the likelihood that America is getting back to work. What housing improvement there has been, has nevertheless produced almost no extra construction employment. Productivity gains, it seems.
No wonder this jobless "recovery" has the Fed deploying those important modifying words again:
...it likely will be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6-1/2 percent...The reason for that emphasis is that the oft-touted 6-1/2 percent goal would leave tens of millions of "discouraged", non-labor-force Americans still out in the cold jobless winds. The Fed acknowledges that reality:
....the Committee will also consider other information, including additional measures of labor market conditions...Factoring in those additional measures (such as: a still falling labor force participation rate), will ensure that the Fed never has sufficiently sunny "incoming information" to justify additional meaningful Tapering.
And if the end of Tapering is well into the future, the end of near-zero percent interest rates is accessible now only by advanced time travel. The giveaway comes via another of those deadly Fed modifiers, regarding when the Fed's zero rates will end:
...a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens...Say...., later this century.
So, just run by me how this was a tightening of money?
I see promise after promise to keep the pedal to the metal and continue to drive elite assets skyward, while spinning a line of BS to the public and posing an international facade.
THE 'JOBS' DELUSION
[Audio: Will We 'Droid Our Economy To Death?]
That's Neoliberalism's dirty, little, big secret. That's why the smokescreen and the BS. The nature and role of money is changing as part of a hi-tech revolution. That's why all the QE.
But, whatever you do, don't tell anybody. If it got out that the jobs we used to know are never coming back, it would only awaken the population, empower unions and lead to dangerously meaningful reform.
If America understood the real challenges it would rein in finance and adopt QE --not for banks and the elite, but for the People. Legitimate QE to seed a new prosumer economy befitting ongoing technological realities in the swansong of the consumer era.
But, Sssshhh about all that. And, way to go, Fed.
Way to go, "Recovery".
Way to go, "Full employment, we promise, real soon."
Way to go, QE Taper -'cos things are going so well.
The US Elite:
Last Century's People, failing This Century's Future.
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